Cryptocurrency dealers may face closure in India even as Bitcoin reaches new high of $7000

BT Online | New Delhi, Thursday, November 2, 2017 | 21:31 IST

The development comes at a time when Bitcoin, the oldest and most popular cryptocurrency in the world, is on a roll. The cryptocurrency has seen its value skyrocketing with respect to every major currency on positive global signs.

Cryptocurrency dealers might have to face closure in days to come. A government panel has reportedly recommended shutting down cryptocurrency dealers operating in the country to put an end to use of cryptocurrencies such as Bitcoin.

On the other hand, market experts believe that closing down cryptocurrency dealers or exchnages is not the way to stop use of cryptocurrencies. Government will have to put a stop on buying and selling of crptocurrencies in cash. In the event of their closure, buyers can always head out to foreign exchanges, experts told The Economic Times.

The development comes at a time when Bitcoin, the oldest and most popular cryptocurrency in the world, is on a roll. The cryptocurrency has seen its value skyrocketing with respect to every major currency on positive global signs. Coming to India though, even the Reserve Bank of India (RBI) has refused to accept cryptocurrency citing security reasons.

Bitcoin gold rush in the US

Meanwhile, Bitcoin raced past the $7000 milestone for the first time ever riding on back of positive cues today. The most popular cryptocurrency went as high as $7,066.44 on the Luxembourg-based Bitstamp exchange on Thursday.

With this jump, Bitcoin has grown seven times since the start off this year. Bitcoin has grown leaps and bounds in terms of value in recent months, with 200 per cent growth during the course of past seveen weeks alone. In terms of India Rupee, one unit of Bitcoin now equals more than Rs 4.54 lakhs as of today. Only three months ago, Bitcoin was valued at Rs 1.79 lakh.

This latest spike in value takes bitcoin's aggregate value, or "market cap" -- its price multiplied by the number of bitcoins released into circulation -- to more than $117 billion, a Reuters report quoted industry website Coinmarketcap. This forms a substantial part the aggregate value of all cryptocurrencies, which is now at a record high of over $190 billion according to website.

Globally, things have been quite favourable for the cryptocurrency, driving its lucrative growth. The latest rally came after the announcement by world's largest derivatives exchange operator CME Group earlier this week that it is going to launch bitcoin futures. This move will open avenues for the cryptocurrency to enter mainstream markets.